Increase in investment limit of FPIs in corporate bonds from 9 per cent to 15 per cent: FM

In her second Budget presentation, the finance minister said certain government securities will be open for foreign investors.
Finance Minister Nirmala Sitharaman presents the Union Budget 2020-21 in the Lok Sabha in New Delhi Saturday Feb. 1 2020. (Photo | LSTV)
Finance Minister Nirmala Sitharaman presents the Union Budget 2020-21 in the Lok Sabha in New Delhi Saturday Feb. 1 2020. (Photo | LSTV)

NEW DELHI: The government plans to increase investment limit of foreign portfolio investors (FPI) in corporate bonds from 9 per cent to 15 per cent, Finance Minister Nirmala Sitharaman said on Saturday.

In her second Budget presentation, the finance minister said certain government securities will be open for foreign investors.

She also proposed debt-exchange traded funds comprising mainly government securities, while stating that Rs 22,000 crore has already provided as support to infrastructure project pipeline.

To address liquidity constraints of NBFCs and housing finance corporations, partial credit guarantee scheme will be launched by the government, she added.

Sitharaman said a scheme will be introduced to provide subordinate debt for entrepreneurs of MSMEs.

The government has asked the RBI to extend debt restructuring window for MSME by a year to March 31, 2021.

Moreover, a National Recruitment Agency will be set up for conducting common online eligibility tests for recruitment to non-gazetted posts, the finance minister said.

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